The Study of Factors Affecting the Timeliness of Financial Reports: The Experiments on Listed Companies in Vietnam

Abstract

Article History JEL Classification:M40, M419. This paper studies the factors affecting the timeliness of financial reports (FR) of enterprises in Vietnam. This research uses panel data with 1070 observations, at 214 companies listed on Vietnam's stock market in the period 2012 -2016. Retrieved results using the GLS method shows that there are 04 independent variables, including consolidated financial reports (CON), the audit firm (AUDIT), profitability (ROA) and the size of the business (SIZE) with relation to the timeliness of financial reports and statistical significance. There are two factors, including financial leverage (LV) and industry (INDUSTRY) which do not affect the timeliness of financial reports. In addition, the research results show that there are differences and statistical meanings in the publishing time of different types and starting times of financial reports. Based on those results, the authors have proposed a suggestion to boost the timeliness of FR.Contribution/ Originality: This study uses new estimation methodology, GLS method analysis to measure the factors affecting the timeliness of financial reports. Applying these exhaustive empirical methods result in: including consolidated financial reports, the audit firm, profitability and the size of the business with relation to the timeliness of financial reports.

Logistic Regression Model for Assessing Factors Affecting Timeliness of Financial Statement Submission

“…To maintain a good reputation in the community, large companies tend to be more timely in submitting financial reports. The research's results of Ha et al (2018), Kusumawardani & Priyadi (2018), and Hastutik (2015), explains that company size affects the timeliness of submitting financial statements. The larger the size of the company, the more resources it has.…”

“…Several studies on the factors that influence the timeliness of financial statement submission have been carried out. Many researchers examine the effect between timeliness of financial statements and accounting information, for example, Bagnoli et al (2002), Graham et al (2005), Sengupta (2004), Ha et al (2018), Raihani et al (2019). Many factors allow managers to provide annual and timely reports to reduce the cost of late reporting, for example, company size, current ratio, financial leverage, and profitability (G Hamidi & Rasouli, 2016).…”

“…found a negative and insignificant relationship between the current ratio and profitability with the delay in financial reporting. Ha, et al (2018) examined the independent variables, namely the financial statements consolidated in connection with financial statement timely, audit firms, profitability and size of the business. The results found profitability and business size affect the timeliness of financial statements.…”

“…One indicator of a company's success in financial terms can be seen from its profitability. High profitability and low losses are considered good news for a company (Ha et al, 2018). Companies that have good news will usually publish financial statements early.…”

Profitability, Liquidity, Size, Reputation of Public Accounting and Timeliness Reporting Financial Statement: An Analysis of Manufacturing Company Overview in Indonesia

“…Many factors affect the timeliness of delivering financial statements including profitability, liquidity, company size, and the reputation of accounting firms. The first factor is that profitability is the company's ability to generate profits in the future, the profitability of a company is important information for investors as a consideration to investing the funds [2]- [5].The research that conducted by [6]- [8]revealed that profitability has a positive and insignificant effect on the timeliness of financial statements submission. Meanwhile, the research conducted by [9] and [10]states that profitability has a significant positive effect on the timeliness of financial statements submission.…”